Can you really learn Forex trading using free Forex trading systems? The answer is yes you can. Just because a Forex trading system is being sold commercially does not mean that it works any better than free systems you may find available.
Most likely free Forex trading systems are just basic and most often used as examples of Forex trading systems. The fact that it is a simple and basic system makes an excellent trading system to learn from.
You can run a free Forex trading system on a demo account. This creates an outstanding learning environment for a beginning Forex trader. You can observe how the system performs through wide variety of varying market conditions. Just this type of observation itself can tell you a lot. If for instance, the system seems to do well in the up markets and down markets, but poorly in sideways markets, then you know the system follows the trend. This type of system is called a trend following system.
One nice thing about some free Forex trading systems is that they may actually be developed by experienced traders. Some experienced traders or more than happy to share their knowledge with those just starting out and make these systems freely available.
One important note here is that while it’s fine to learn to trade Forex using free Forex trading systems you don’t want to simply jump from freebie to freebie without building on your Forex education. Use such a system to learn more about trading entries, exits, and risk control.
When running free forex software in your demo account keep good records of the trades it makes and the conditions under which it makes those trades. Be sure to keep track of things such as the total net profit, maximum drawdown, profit factor, and other important system metrics. You can learn a lot about forex trading just by observing a trading system’s interaction with the market. From there you can seek to find the system’s weaknesses and minimize them and/or find the system’s strengths and maximize them.
A basic system can serve as a template from which you can build and create your own system. Creating your own profitable trading system be the objective of learning technical analysis and forex trading. Keep in mind that this is not a task to be taken lightly as it does involved a good deal of trading research as well as system development expertise.
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